Monday, 4 November 2024

Why Every Trader Needs a Downside Hedge This Week

US election and FOMC meeting coming up!
 
   
     

Why Every Trader Needs a Downside Hedge This Week
 
 
Two major upcoming events are big drivers of the world's global liquidity for the coming months. How does this play into the markets, and how are traders reacting ahead of the events?

Come join me as we dive in and see what’s moving! 

Plus, as always, we have stocks popping and dropping so come find out what is moving this morning as I look for stocks and do some live premarket analysis on SPX, SPY, NDX, QQQ, Russell, IWM and other stocks that are potential plays for the day. 

 
— — — 

Upcoming Market Risks: Why Every Trader Needs a Downside Hedge This Week

As we head into a week stacked with economic and political events — the upcoming FOMC meeting and election, to name a couple — the market feels primed for some potential turbulence. 

There’s a real chance for a pullback in the near term, and being prepared with a solid protection strategy could make a big difference for anyone looking to weather the possible downside.

First off, it’s not about going all-in on a bearish position…

Rather, it’s about being tactical with a safety net in place. Personally, I’ve already added a layer of downside protection ahead of next week’s anticipated FOMC meeting, where the Fed is likely to make waves with another rate announcement. 

In fact, even though this potential rate cut may feel like it’s just catching up with the market, the event will likely influence short-term price moves across multiple sectors.

To prepare, I’m considering adding another hedge early next week — Monday or Tuesday — stay tuned for what I end up doing. 

There’s a case to be made for building in multiple layers based on varying market conditions. Right now, I’m eyeing everything from major indices to individual stocks like Amazon (AMZN) and Microsoft (MSFT) to set up for potential short-term plays, with specific entry points in mind if we see a pop back up before another decline.

Let’s not forget — this period could just be the calm before the storm. If there’s one thing we can count on, it’s the market's ability to catch traders off guard. 

Whether we see a quick pop to new highs or a more drawn-out dip, having protection in place is about maintaining flexibility. After all, there’s no room for complacency in markets like these.

Consider keeping a close eye on liquidity trends, as a flush out in global liquidity could pull U.S. markets down with it. With the potential for multiple rounds of downside, a well-timed hedge is less about “if” you’ll need it and more about “when.” 

By layering in targeted protection, we give ourselves the chance to stay agile and capitalize on those moves — without getting sidelined if the market takes a surprise turn.

As always, stay prepared and ready to adjust, because when the market makes a move, it rarely waits around. This isn’t about making a bet…

It’s about having the right tools in place when things get bumpy.


Today’s Daily Chart Setup: Healthcare Services Group (HCSG)  
 
 
This idea came directly from my Daily Chart Setup that automatically signals potential plays. 
 
HCSG is a new potential entry. Target: 12.29 Stop below: 8.7
HCSG has a historical win rate of 87.5%
HCSG has a profit factor of 3.71
HCSG trades last 171 trading days on average over 24 trades since 1983.

This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. Always remember that past performance is not indicative of future results.

You can find full details on exactly how this works by scrolling down further in this newsletter. 

Now be sure to join me live at 9:15 a.m. ET for “Morning Monster,” my market-open livestream on YouTube!

 
 
‘Morning Monster’ Is Starting NOW!
I’m also live at 5 p.m. ET on Tuesdays for “30 Minutes of Awesome” — bring your ticker and I’ll analyze it in real time!

And be sure to hit that Subscribe button on my YouTube page!
_____________________________________________________

ONE Mag 7 TIcker I’m Watching
 
 
Check this out…
 
 
 

This is a chart for one of the big tech stocks, which has a little over a 30% gain over the past year... 

What that means is, if you had just bought and held the stock last year, you would be up 30% by now.

While that isn't bad, it's not worth it in my opinion...

Especially when you consider that any trader could have had a shot at 100% ROI — in just one week.

Now, these cycles only happen once in a while on certain stocks — which is probably why not everyone pays attention to them

But get this… 

When they do happen, you and I have a shot at what could be a double in just one week.

In fact, as I write this, there's a Mag 7 stock Graham’s watching this week.

And if all goes as planned, we can tap into this stock's "profit cycle" this week for a shot at a 100% ROI…

That’s why I want you to join Graham at 11:15 a.m. ET TODAY, Nov. 4, for a special broadcast — where we'll reveal exactly how he trades these profit cycles, and share the Mag 7 ticker that could pay a 100% ROI this week!

While we can't promise future wins or prevent losses, this could be a way to leave those measly 30% gains per year in the dust!

 
 
You Can Join Us at 11:15 a.m. ET Tuesday!
_____________________________________________________
How the Daily Chart Setup Works
 
 
Here’s a more detailed description of how the pattern triggers:
 
1. The price breaks upward through the orange Market Roadmap Line. 

2. Then the price goes up and down while staying above the line. Eventually, it comes down to touch the line again — this could take days, weeks or even months. 

3. Once it touches the line and starts moving back up, that signals an entry. 

I use Fibonacci levels for for profit targets and stop losses, and these two tools combined have helped me achieve a 77% win rate over the past six-plus years!

You can grab my Market Roadmap Indicator here for just $5 — less than a cup of coffee at most places!
Jeffry Turnmire
Jeffry Turnmire Trading

I host my “Morning Monster” livestream at 9:15 a.m. ET each weekday on YouTube, and then “30 Minutes of Awesome” at 5 p.m. ET each Tuesday!

Please check out my channel and hit that Subscribe button!

I’m just a regular dude in Knoxville, Tennessee: a husband, father, civil engineer, urban farmer, maker and trader.

I've been at this trading thing with real money for 20-plus years, and started paper trading over 35 years ago. I have a knack for making some epic predictions that just may very well come true. Why share them? Because I like helping other people — it's the Eagle Scout in me. 


*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. 
   
 

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